Lakeland Financial Earnings 2020-03-31

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to _____________

Commission File Number: 0-11487

LAKELAND FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Indiana		35-1559596
(State or Other Jurisdiction		(IRS Employer
of Incorporation or Organization)		Identification No.)

202 East Center Street, Warsaw, Indiana		46580
(Address of principal executive offices)		(Zip Code)

(574) 267‑6144

(Registrant’s Telephone Number, Including Area Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, No par value	LKFN	The Nasdaq Stock Market LLC
		(Nasdaq Global Select Market)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of ‘‘large accelerated filer,’’ ‘‘accelerated filer,’’ ‘‘smaller reporting company,’’ and ‘‘emerging growth company’’ in Rule 12b–2 of the Exchange Act.

Large accelerated filer ⌧ Accelerated filer ◻ Non-accelerated filer◻

Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of common stock outstanding at April 29, 2020: 25,701,115

Table of Contents

TABLE OF CONTENTS


		Page
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements
	Consolidated Balance Sheets — March 31, 2020 and December 31, 2019	1
	Consolidated Statements of Income — three months ended March 31, 2020 and 2019	2
	Consolidated Statements of Comprehensive Income — three months ended March 31, 2020 and 2019	3
	Consolidated Statements of Changes in Stockholders’ Equity — three months ended March 31, 2020 and 2019	4
	Consolidated Statements of Cash Flows — three months ended March 31, 2020 and 2019	5
	Notes to the Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	48
Item 4.	Controls and Procedures	48

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	49
Item 1A.	Risk Factors	49
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	50
Item 3.	Defaults Upon Senior Securities	50
Item 4.	Mine Safety Disclosures	50
Item 5.	Other Information	50
Item 6.	Exhibits	51

SIGNATURES		52

Table of Contents

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS (in thousands, except share data)


	March 31,		December 31,
	2020		2019
	(Unaudited)
ASSETS
Cash and due from banks	$	52,988	$	68,605
Short-term investments		79,593		30,776
Total cash and cash equivalents		132,581		99,381

Securities available-for-sale (carried at fair value)		624,325		608,233
Real estate mortgage loans held-for-sale		7,982		4,527

Loans, net of allowance for loan losses of $53,609 and $50,652		4,032,129		4,015,176

Land, premises and equipment, net		60,945		60,365
Bank owned life insurance		83,037		83,848
Federal Reserve and Federal Home Loan Bank stock		13,772		13,772
Accrued interest receivable		15,433		15,391
Goodwill		4,970		4,970
Other assets		54,904		41,082
Total assets	$	5,030,078	$	4,946,745


LIABILITIES
Noninterest bearing deposits	$	1,057,994	$	983,307
Interest bearing deposits		3,223,709		3,150,512
Total deposits		4,281,703		4,133,819

Borrowings
Federal Home Loan Bank advances		75,000		170,000
Miscellaneous borrowings		10,500		0
Total borrowings		85,500		170,000

Accrued interest payable		10,082		11,604
Other liabilities		46,221		33,222
Total liabilities		4,423,506		4,348,645

STOCKHOLDERS’ EQUITY
Common stock: 90,000,000 shares authorized, no par value 25,701,115 shares issued and 25,234,572 outstanding as of March 31, 2020 25,623,016 shares issued and 25,444,275 outstanding as of December 31, 2019		113,337		114,858
Retained earnings		484,857		475,247
Accumulated other comprehensive income		22,550		12,059
Treasury stock at cost (466,543 shares as of March 31, 2020, 178,741 shares as of December 31, 2019)		(14,261)		(4,153)
Total stockholders’ equity		606,483		598,011
Noncontrolling interest		89		89
Total equity		606,572		598,100
Total liabilities and equity	$	5,030,078	$	4,946,745

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

CONSOLIDATED STATEMENTS OF INCOME (unaudited - in thousands, except share and per share data)


	Three Months Ended
	March 31,
	2020		2019
NET INTEREST INCOME
Interest and fees on loans
Taxable	$	46,054	$	48,866
Tax exempt		222		251
Interest and dividends on securities
Taxable		1,973		2,497
Tax exempt		2,006		1,642
Other interest income		184		238
Total interest income		50,439		53,494

Interest on deposits		11,199		13,883
Interest on borrowings
Short-term		362		950
Long-term		24		452
Total interest expense		11,585		15,285

NET INTEREST INCOME		38,854		38,209

Provision for loan losses		6,600		1,200

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		32,254		37,009

NONINTEREST INCOME
Wealth advisory fees		1,859		1,620
Investment brokerage fees		417		386
Service charges on deposit accounts		2,772		4,287
Loan and service fees		2,408		2,404
Merchant card fee income		669		622
Bank owned life insurance income (loss)		(292)		444
Mortgage banking income		586		222
Net securities gains		0		23
Other income		2,358		1,517
Total noninterest income		10,777		11,525

NONINTEREST EXPENSE
Salaries and employee benefits		11,566		12,207
Net occupancy expense		1,387		1,366
Equipment costs		1,417		1,349
Data processing fees and supplies		2,882		2,425
Corporate and business development		1,111		1,206
FDIC insurance and other regulatory fees		267		406
Professional fees		1,147		937
Other expense		2,312		2,577
Total noninterest expense		22,089		22,473

INCOME BEFORE INCOME TAX EXPENSE		20,942		26,061
Income tax expense		3,643		4,379
NET INCOME	$	17,299	$	21,682

BASIC WEIGHTED AVERAGE COMMON SHARES		25,622,988		25,491,750
BASIC EARNINGS PER COMMON SHARE	$	0.68	$	0.85
DILUTED WEIGHTED AVERAGE COMMON SHARES		25,735,826		25,665,510
DILUTED EARNINGS PER COMMON SHARE	$	0.67	$	0.84

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited - in thousands)


	Three months ended March 31,
	2020		2019
Net income	$	17,299	$	21,682
Other comprehensive income
Change in securities available-for-sale:
Unrealized holding gain on securities available-for-sale arising during the period		13,219		10,960
Reclassification adjustment for gains included in net income		0		(23)
Net securities gain activity during the period		13,219		10,937
Tax effect		(2,775)		(2,297)
Net of tax amount		10,444		8,640
Defined benefit pension plans:
Amortization of net actuarial loss		63		50
Net gain activity during the period		63		50
Tax effect		(16)		(12)
Net of tax amount		47		38

Total other comprehensive income, net of tax		10,491		8,678

Comprehensive income	$	27,790	$	30,360

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (unaudited - in thousands, except share and per share data)

Accumulated

Other

Total

Common Stock

Retained

Comprehensive

Treasury

Stockholders’

Noncontrolling

Total

Shares

Stock

Earnings

Income (Loss)

Stock

Equity

Interest

Equity

Balance at January 1, 2019

25,128,773

112,383

419,179

(6,191)

Price	44.42	EPS	3
Shares	26	P/E	13
MCap	1,146	P/FCF	16
Net Debt	-137	EBIT	167
TEV	1,009	TEV/EBIT	6
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-03-31	Filed 2020-04-30
10-K	2019-12-31	Filed 2020-02-24
10-Q	2019-09-30	Filed 2019-11-01
10-Q	2019-06-30	Filed 2019-08-09
10-Q	2019-03-31	Filed 2019-05-03
10-K	2018-12-31	Filed 2019-02-28
10-Q	2018-09-30	Filed 2018-11-05
10-Q	2018-06-30	Filed 2018-08-03
10-Q	2018-03-31	Filed 2018-05-07
10-K	2017-12-31	Filed 2018-03-01
10-Q	2017-09-30	Filed 2017-11-07
10-Q	2017-06-30	Filed 2017-08-07
10-Q	2017-03-31	Filed 2017-05-10
10-K	2016-12-31	Filed 2017-03-01
10-Q	2016-09-30	Filed 2016-11-09
10-Q	2016-06-30	Filed 2016-08-09
10-Q	2016-03-31	Filed 2016-05-10
10-K	2015-12-31	Filed 2016-03-03
10-Q	2015-09-30	Filed 2015-11-09
10-Q	2015-06-30	Filed 2015-08-10
10-Q	2015-03-31	Filed 2015-05-11
10-K	2014-12-31	Filed 2015-03-05
10-Q	2014-09-30	Filed 2014-11-10
10-Q	2014-06-30	Filed 2014-08-11
10-Q	2014-03-31	Filed 2014-05-12
10-K	2013-12-31	Filed 2014-03-03
10-Q	2013-09-30	Filed 2013-11-12
10-Q	2013-06-30	Filed 2013-08-09
10-Q	2013-03-31	Filed 2013-05-10
10-K	2012-12-31	Filed 2013-03-04
10-Q	2012-09-30	Filed 2012-11-07
10-Q	2012-06-30	Filed 2012-08-08
10-Q	2012-03-31	Filed 2012-05-10
10-K	2011-12-31	Filed 2012-03-05
10-Q	2011-09-30	Filed 2011-11-09
10-Q	2011-06-30	Filed 2011-08-09
10-Q	2011-03-31	Filed 2011-05-09
10-K	2010-12-31	Filed 2011-03-07
10-Q	2010-09-30	Filed 2010-11-04
10-Q	2010-06-30	Filed 2010-08-04
10-Q	2010-03-31	Filed 2010-05-05
10-K	2009-12-31	Filed 2010-03-08

8-K	2020-07-27	Regulation FD, Exhibits
8-K	2020-07-27	Earnings, Exhibits
8-K	2020-07-14	Regulation FD
8-K	2020-05-05
8-K	2020-04-27
8-K	2020-04-14
8-K	2020-04-14
8-K	2020-03-25
8-K	2020-03-10
8-K	2020-01-27
8-K	2020-01-14
8-K	2019-11-14
8-K	2019-11-04
8-K	2019-10-25
8-K	2019-10-08
8-K	2019-07-25
8-K	2019-07-09
8-K	2019-04-25
8-K	2019-04-09
8-K	2019-04-09
8-K	2019-03-20
8-K	2019-03-14
8-K	2019-01-25
8-K	2019-01-08
8-K	2018-11-27
8-K	2018-10-25
8-K	2018-10-11
8-K	2018-10-09
8-K	2018-07-25
8-K	2018-07-10
8-K	2018-04-25
8-K	2018-04-10
8-K	2018-04-10
8-K	2018-01-25
8-K	2018-01-11
8-K	2018-01-09

EX-31.1	lkfn-20200331xex31d1.htm
EX-31.2	lkfn-20200331xex31d2.htm
EX-32.1	lkfn-20200331xex32d1.htm
EX-32.2	lkfn-20200331xex32d2.htm

LKFN 10Q Quarterly Report

Lakeland Financial Earnings 2020-03-31